|Company Name||DLocal Limited|
|Class Period||May 02, 2022 to May 25, 2023|
|Lead Plaintiff Motion Deadline||December 05, 2023|
|Court||Eastern District of New York|
On May 26, 2023, Argentine news outlet Infobae reported that the Argentine government was investigating DLocal for a possible $400 million fraud. Specifically, Infobae reported that the government was investigating the Company for “improper maneuvers” and transfers abroad, with unnamed sources alleging that DLocal “operates as a mere instrument to take advantage of the exchange rate gap and to take dollars abroad with operations that are not reflected in the accounting.”
The same day, May 26, 2023, DLocal issued a response to the Infobae article, characterizing it as “misleading” and “factually incorrect.” DLocal’s response also assured investors that the Company is in close contact with Argentine authorities, that there is a continuous flow of information with those authorities, and that the Company was not notified by any Argentinian authority regarding a foreign exchange investigation.
Following these revelations, DLocal’s share price fell $2.39 per share, or 17.32%, to close at $11.41 per share on May 26, 2023.
Then, on June 15, 2023, DLocal issued a press release revealing that it was engaging with senior representatives of the Argentine federal government to discuss, among other matters, the manner in which DLocal operates in the country, including DLocal’s compliance with foreign exchange regulations.
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